British Petroleum (BP) has reported a decline in its first-quarter profit due to lower oil and gas prices that led to weaker fuel margins at the energy major.
BP as the company is commonly known reported a Q1 net profit of $2.7 billion U.S. That was down from $3 billion in the previous fourth quarter of 2023 and below Wall Street estimates of $2.9 billion U.S.
The profit translated to earnings per share (EPS) of $0.97 U.S., which missed expectations of $1.02 U.S.
Revenue in the first quarter of the year totaled $48.88 billion U.S., which missed consensus forecasts of $56.87 billion U.S.
The London-based company said the results were largely due to lower oil and gas realizations that led to weak fuel margins.
Despite the poor showing, BP executives said they remain on track to deliver $2 billion U.S. in cost savings by the end of 2026.
BP also recommitted to shareholder returns, announcing a new stock buyback program of $3.5 billion U.S. for the first half of this year.
The stock of BP dipped 2% on news of the latest financial results. Over the past 12 months, the company’s share price has risen 5% to $39.04 U.S. in New York trading.
